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CHINA: Coty and Li & Fung have entered into an agreement in which Li & Fung will distribute some of Coty’s power brands in China, including Adidas, Rimmel and Playboy. The agreement is effective July 1.

This agreement represents a shift in Coty’s go-to-market strategy for brands sold through the mass distribution channel in China, by allowing Coty to leverage Li & Fung’s broad distribution network in that channel. Coty will oversee development, production, marketing and brand building activities, while profiting from the strong go-to-market capabilities of Li & Fung.

At this juncture, Coty will also discontinue the TJoy brand to focus on the international power brands that have more growth potential in China. This distribution agreement is consistent with Coty’s previously announced intent to reorganize Coty’s mass business in China, with the objective of bringing significant benefits to the profitability of Coty China and to the overall skin and body care segment.

“We expect our partnership with Li & Fung to accelerate the expansion of some of our international brands in the mass channel, strengthening Coty’s position in this fast growing market,” said Coty CEO Michele Scannavini, CEO, Coty Inc.